Coca-Cola's India bottling arm files draft papers for IPO
What's the story
Hindustan Coca-Cola Holdings, the parent company of Coca-Cola's bottling operations in India, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed IPO is entirely an offer for sale (OFS) of up to 99.75 crore equity shares by its promoter selling shareholder Hindustan Coca-Cola Overseas Holdings Pte. Ltd.
Financial details
No funds will be raised by the company
Since this IPO is entirely an OFS, Hindustan Coca-Cola Holdings won't receive any money from the issue.
The proceeds, after deducting the applicable offer-related expenses, will go to the selling shareholder.
The company has not disclosed the offer size or price band in its draft prospectus.
Also, a portion of shares has been reserved for eligible employees, but the exact number is yet to be specified.
Listing details
Proposed listing on BSE and NSE
The equity shares from this IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Several financial institutions, including Kotak Mahindra Capital, Citigroup Global Markets India, JP Morgan India, Morgan Stanley India, Axis Capital, Goldman Sachs India, and IIFL Capital Services, will act as book-running lead managers for this issue.
Revenue report
Financial performance of Hindustan Coca-Cola Holdings
Hindustan Coca-Cola Holdings reported a revenue from operations of ₹11,548.58 crore in FY26, down from ₹12,751.29 crore in FY25 and ₹14,021.55 crore in FY24.
The company's restated profit for FY26 was ₹1,165.05 crore as against ₹759.90 crore in FY25 and ₹2,812.10 crore in FY24.
These fluctuations are partly due to exceptional gains from selling certain business territories through slump sales.
Operational challenges
Business concentration risks highlighted in DRHP
The DRHP also highlights business concentration risks, noting that five territories accounted for 75.63% of revenue from operations in FY26.
It also notes the company's dependence on The Coca-Cola Company and its affiliates for the supply of concentrate used in its beverages.
Hindustan Coca-Cola Holdings is engaged in investment operations related to Hindustan Coca-Cola Beverages Private Limited (HCCB), an authorized bottler for The Coca-Cola Company.